EBC Markets Briefing | Euro slumps on Trump’s new tariff idea

The dollar strengthened on Monday as Trump's new tariff threats pressured the euro and Australian dollar, with the euro near last week's two-year low.

The dollar firmed on Monday after Trump’s fresh tariff threats put pressure on the euro and the Australian dollar. The single currency traded close to its two-year low touched last week.

Trump said he will announce reciprocal tariffs this week, matching the tariff rates levied by each country. He acknowledged Americans could “feel some pains” from tariffs though earlier this month.

US job growth slowed more than expected in January, but a 4.0% unemployment rate probably gives the Fed cover to hold off cutting interest rates at least until June for more clarity on the global trade landscape.

ECB board member Piero Cipollone said European firms could absorb some of the higher costs by sacrificing profit margin while the euro's inevitable weakening against the dollar would also buffer the bloc.

Trade strife could drag economic growth down but not enough to induce a recession, especially since other parts of the economy are showing resilience, he added.

Euro zone business activity returned to growth at the start of the year after two months of contraction. The expansion in the services industry helped offset an ongoing downturn in the beleaguered manufacturing sector.

The euro has dipped below 50 SMA – a bearish sign indicative of further losses ahead. The initial support is seen at 1.2600.

EBC Financial Risk Management Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC Financial News or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

Regulation: FCA (UK), ASIC (Australia), CIMA (Cayman Islands)
read more
Why Silver could be the precious metal of 2025

Why Silver could be the precious metal of 2025

The gold bar is metallic yellow and slightly behind the silver bar, which is metallic white and positioned in front. Gold may still be the headline act, but silver’s no longer content playing second fiddle. In 2025, silver isn’t just glittering - it’s surging forward as one of the most exciting metals on the market.
Deriv | 22h 24min ago
Risk-on sentiment fades as tariffs return to the spotlight 

Risk-on sentiment fades as tariffs return to the spotlight 

Dollar surrenders gains posted after robust labour market report; Trump celebrates US budget bill approval; scheduled to sign it today; Most Fed members feel more comfortable as July rate cut is priced out; Oil steadies near $66, gold rally retains momentum;
XM Group | 1 day ago
ATFX Market Outlook 4th July 2025

ATFX Market Outlook 4th July 2025

The U.S. economy added 147,000 jobs in June, beating expectations of 110,000, while the unemployment rate fell to 4.1%. Traders are now betting that the Fed is unlikely to cut rates before September. Meanwhile, the House narrowly passed Trump's major fiscal bill by a vote of 218 to 214. U.S. stocks rallied on Thursday, hitting fresh record highs.
ATFX | 1 day ago
Nonfarm payrolls take center stage

Nonfarm payrolls take center stage

Slide in US private payrolls raise concerns about NFP miss - US strikes trade deal with Vietnam ahead of July 9 deadline - Pound feels the heat of fiscal shenanigans - S&P 500 hits fresh record high ahead of jobs report
XM Group | 2 days ago
Rate Shifts Steer FX Markets as Silver Holds Strong

Rate Shifts Steer FX Markets as Silver Holds Strong

On July 3, silver stays firm above $35.40 as Fed cut bets persist. EUR/USD holds near 1.1800, while GBP/USD lingers near 1.3585 ahead of UK jobs data. JPY strengthens after BoJ signals a hawkish pause. AUD/USD slips on weak trade surplus. Focus turns to US NFP and ISM data for market direction before the US holiday break.
Moneta Markets | 2 days ago